GLP finally offered $18.7 billion to acquire the company, Segro's board of directors compromised, and the stock price rose
SLO trading park and SEGRO logo with modern buildings in the background. Shareholders who accept the takeover will still receive Segro's interim dividend. Segro said that if GLP issues a formal takeover offer, the company's board of directors will recommend that shareholders accept the 14 billion pound (equivalent to $18.72 billion) acquisition plan. Segro, who had rejected takeover offers three times before, finally gave in and accepted the latest £14 billion ($18.72 billion) takeover offer from US warehousing giant GLP, sending its stock price to its highest level in nearly four years. Shares in the London-listed company were up 7.1% at 958.60 pence in early trading on Thursday, hitting their highest since September 2022; the stock's year-to-date gain now stands at 33%. Segro announced on Wednesday evening: If GLP submits a formal offer, the board of directors will recommend this latest acquisition plan to all shareholders; it also agreed to extend the deadline for GLP to submit a firm offer to August 12. Late on Wednesday, GLP raised its bid for the British industrial property developer to 14 billion pounds, claiming it was final. The deal is packaged with cash alternative payment options of up to £3.5bn. The American company offered a replacement plan: for every share of Segro stock that shareholders surrender, they can exchange for 0.092 shares of newly issued GLP shares. The latest offer values Segro at 10.32 pounds per share, which is 3.9% higher than the previous round of bids and 9.5% higher than the initial approach offer. Shareholders who choose to accept the takeover are still entitled to receive Segro's interim dividend of 10.14 pence per share. Segro's announcement read: "The Segro board of directors unanimously determined that the financial conditions of the fourth round of acquisitions are attractive and are willing to recommend it to all shareholders." GLP said that based on feedback from shareholders, it decided to increase the acquisition offer, and said that the revised plan is sufficiently attractive to Segro's board of directors. If this transaction is completed, Segro will become another British company acquired by an American company, which will have an impact on the London Stock Exchange. Low-cost airline easyJet accepted in principle a $7.6 billion acquisition offer from US asset management company Apollo; energy company DCC said it would recommend shareholders accept a takeover of up to $7.85 billion from the KKR consortium. Earlier this week, outsourcing service provider Mitel announced that it had agreed to be acquired by OCS for US$4.16 billion; food ingredients giant Taitrail has also recently finalized its acquisition by ingredients manufacturer Ingren.